CTS (CTS)

Risks

• Because we currently derive a substantial portion of our revenues from a small number of customers, any decrease in orders from these customers could have an adverse effect on our business, financial condition and operating results.
• Our customers may cancel their orders, change production quantities or locations or delay production.
• We sell products to customers in cyclical industries that are subject to significant downturns that could materially adversely affect our business, financial condition and operating results.
• We are susceptible to trends and factors affecting industries that we serve.
• Our operating results may vary significantly from period to period.
• We may experience shortages and increased costs of raw material and required electronic components.
• We may pursue acquisition opportunities that complement or expand our business as well as divestitures that could impact our business operations. We may not be able to complete these transactions, and these transactions, if executed, may pose risks that could materially adversely affect our business, financial condition and operating results.
• We may restructure our operations or fail to execute capital projects as planned, which may materially adversely affect our business, financial condition and operating results.
• We may be unable to compete effectively against competitors.
• We may be unable to keep pace with rapid technological changes that could make some of our products or processes obsolete before we realize a return on our investment.
• Products we manufacture may contain design or manufacturing defects that could result in reduced demand for our products or services and liability claims against us.
• We are subject to government regulations, including environmental, health, and safety laws and regulations, that expose us to potential financial liability.
• Regulations related to conflict minerals could adversely impact our business.
• Negative or unexpected tax consequences could adversely affect our results of operations.
• Future dividends on our common stock may be restricted or eliminated.
• Our indebtedness may adversely affect our financial health.
• Our credit facility contains provisions that could materially restrict our business.
• Public health issues such as the COVID-19 pandemic have adversely affected, and could in the future, adversely affect our business or financial results.
• Natural disasters and adverse weather conditions may adversely impact our capability to supply product to our customers.
• Climate related events and climate change legislation could adversely impact our business.
• We face risks relating to our international operations.
• We are exposed to fluctuations in foreign currency exchange rates that may adversely affect our business, financial condition and operating results.
• If we are unable to protect our intellectual property or we infringe, or are alleged to infringe, on others' intellectual property rights, our business, financial condition and operating results could be materially adversely affected.
• Loss of our key management and other personnel, or an inability to attract key management and other personnel, could materially affect our business.
• Ineffective internal control over our financial reporting may harm our business.
• Global privacy, data protection and data security laws are highly complex, evolving rapidly, and may increase our costs to comply.
• We are exposed to, and may be adversely affected by, potential security breaches or other disruptions to our information technology systems and data security.